IMagic Financials

Interactive Magic today reported its revenues for its third quarter 1998, which ended Sept. 30. The company reported net revenues for the quarter of US$2.7 million, compared with revenues of US$5.5 million in the third quarter of 1997. Net loss for the quarter this year was US$3.5 million (39 cents per share), compared with a net loss of US$.6 million (18 cents per share) for the same period last year.

The company says that CD-ROM revenue was reduced by its decision to not release Malkari and UltraFighters to retail "in order to ensure full implementation of the Company's Internet/Online strategy." The company also saw a US$1.4 million charge in the quarter due to the termination of a distribution relationship, "due to a difference over operating strategy."

IMagic says that it expects to hit profitability by the second quarter of next year, and should be profitable for the whole of 1999, by "accelerating the Company's Internet/Online gaming strategy, implementing the new America Online gaming contract and by focusing on high quality CD-ROM products that include the iLZ software."